Yongjin Technology (SH:603995) Zheng Quan Zhi Xing·2025-06-06 09:54Core Viewpoint - The company, Yongjin Technology Group Co., Ltd., maintains a stable credit rating outlook, supported by strong production capacity and revenue growth, despite facing industry pressures and financing challenges for overseas projects [1][2]. Financial Performance - The company's revenue for 2024 reached 41.86 billion yuan, showing an increase from 39.87 billion yuan in 2023 and 39.56 billion yuan in 2022 [7]. - The gross profit margin improved from 4.57% in 2022 to 5.74% in 2024, driven by increased sales of high-margin products and operational efficiency [9]. - The company’s total assets were reported at 35 billion yuan, with total liabilities at 20 billion yuan, resulting in an asset-liability ratio of approximately 57% [2][12]. Production Capacity and Expansion - The company has expanded its production capacity from 2.31 million tons in 2022 to 3.50 million tons by the end of 2024, with significant investments in new production lines [10][11]. - The production of cold-rolled stainless steel, particularly the 300 series, accounted for 76.70% of total output in 2024, with a production volume of 2.58 million tons [10][11]. - The company plans to continue expanding its production capacity, particularly in overseas markets such as Vietnam and Thailand, in response to the "Belt and Road" initiative [12]. Market Environment - The stainless steel industry in China is experiencing growth, with crude stainless steel production increasing from 32 million tons in 2022 to 39 million tons in 2024, representing over 50% of global production [5]. - The demand for cold-rolled stainless steel is expected to rise, particularly in sectors such as construction, automotive, and home appliances, with a projected consumption of 32.49 million tons in 2024 [6]. - The company faces challenges related to high supplier concentration, with the top five suppliers accounting for over 96% of total procurement, which may impact supply chain stability [2][12]. Risks and Challenges - The company is exposed to industry cyclicality, with operational pressures stemming from fluctuating market conditions and international political and economic uncertainties [2][4]. - Financing pressures for overseas projects in Vietnam and Thailand may increase the company's debt levels, impacting its financial stability [2][4]. - The company’s ability to convert convertible bonds into equity has been slow, with only 1 million yuan converted by the end of 2024, which may affect liquidity [2].